Written by: Roshan Dwivedi
Parks Associates announced a new research report today showing average monthly spending on Internet-based subscription VOD services among U.S. broadband households increased from $3.71 per month in 2012 to $6.19 per month in 2015.Content Strategies: Survival in the New Video World examines new business models emerging from the increasing consumption of OTT content, including new experiments in content windowing, which is the process of releasing content at different times through different distribution channels in order to maximize revenues for each channel.
A typical price point for a subscription service is $7-$10, but several niche services are available for under $5, according to Hower. U.S. broadband households on average spend less than $1 per month buying and less than $1 per month renting digital video, indicating they purchase less than one digital video a year and rent between one and four videos per year.
Source : Yahoo Finance